Investing in Life Insurance with Long-Term Care Benefits

There is no downside to it because effectively what you're doing is putting a plan in place. That's going to address a future situation without putting your dollars at risk.

hey, welcome to the wealth webinar Wednesday. I am Steven Nagy filling in for Chris Noggle. Chris is traveling today uh, but the show goes on and we have a really cool special guest with us, Uh from one America and he's been talking about long-term care and its importance of it and how it works into the overall financial planning strategy.

So today is September 7th already unbelievable time flies, so we were actually just up in uh Chris and me and brent, and our entire money multiplier team were just up in Indianapolis uh Indiana a couple weeks ago had a big one at one. America's symposium and uh Kevin was there and a Bunch to the other. You know people from the company and everything it was a great time.

Investing in Life Insurance with Long-Term Care Benefits

So, while we were there, we were talking we're like Kevin. We got to have you come back on because Kevin was on the wealth webinar a few months back, it was been awesome, people loved it. So we said we got to get you back on so here we are we're here today.

So how are you Kevin welcome? I'm doing good do good hope. Everybody else here, thanks for taking time out of your day to share some ideas and some thoughts, and you know how to move forward in your financial future. Yeah yeah, awesome so um so yeah.

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So a lot of you know, you know what America's is one of the mutually owned insurance companies we work with when it comes to the banking policies uh they very supportive, um, great company to work with for banking and for well just life insurance in general And they have a very specialized division in Uh, what's called long-term care and that's what we're talking about today so kevin - I don't know if maybe you can just kind of layout. You know some basics and then kind of start from the beginning and we'll go from there, and we do want to make this interactive today. Also if any questions at all put those in the q, box um comments with us in the chat box, but put those questions in the q, a box and we'll answer those live as we go here.

Steve thanks one of the first things to come up when you mention long-term care, a lot of people, though it's never going to happen to me. It happened to my grandmother that happened my grandfather and i'm never going to be old. But what i'd like to say? You know what America specializes in making sure that at a point in time where you may need care you have the financial resources in place not only to pay for the care which A lot of people focus on.

Investing in Life Insurance with Long-Term Care Benefits

But do you have resources available to you and your family that allow you for that to move forward? So what I ask everyone on the call, I don't want to think about finances. I don't want to think about it. You know what might or might not happen to you in the future.

I want you to picture in your mind. Should you ever need care? What's the lifestyle you envision for yourself, i'm sure you've envisioned a great lifestyle for yourself moving forward. That's why you're dealing with Chris and with steve and you're putting your financial future together so that you can do the things that you want to do as you move forward in life, you have the finances available, but what's the life you envision for yourself, should you ever need care, i'm sure what you're thinking of is you're at home, surrounded by your family.

You can reach out and touch your loved one. You can hold their hand. You've got a smile on your face: the sun's shining down, probably drinking a beer if you're from the buffalo area, like Chris you're watching the bills win the super bowl and they finally got to that point in your life, where they're doing that.

But how do you put in place and what we're here to talk about today is how do we guarantee That you can have the life you envision for yourself? So how do you put together a plan now that does two things you have to ask yourself? Am I being a good steward of my financial future and my family, i'm sure you are you wouldn't be on this call, but should it ever happen where you need the additional resources to address the situation like that Is the money and the resources available? So, are you being a good steward, but, more importantly than anything else that you could think of from a financial standpoint? This is something that requires you to put together a fellowship. It's a fellowship you put together in advance to make sure it's an advent, and success for you and your family. So in other words who are the people you want surrounding you? Where are you Receiving the care 75 of the people that have coverage or put a plan together, receive it at home, exactly in the place where they've envisioned that that would be for them, and what we hope to share with you today is some steps that you Could take and ideas that you can think about that.

Investing in Life Insurance with Long-Term Care Benefits

Put you in a position to live that life, you've envisioned for yourself yeah! Absolutely it's um! You know as a Financial Planner. You know it was a. It was a big deal when we would talk to people about their overall strategy.

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It's amazing, you know it's one of those things. You don't want to talk about, because you don't want to think about being in that position or, or you know, you're the one needing the care or having to care for one of your loved ones ,and when the time comes like having that. There, though, is just so important and it's one of those things again.

It's a tough conversation, But it's one of the conversations that we have to have you know we talk about. You know what can destroy you financially. What can just you know, you know, create your retirement not to go the way that you want and things like that and disasters.

You know um disease divorces, you know all these different things that can happen and but you know, and whether they're going to or not but getting old happens to everybody and it's one of those things where, if You have it's definitely a nice, a nice thing. So what is one of the things you have to think about? You talked about, you know what you're doing financially and I talked about the stewardship and the fellowship that you can be putting together, and you talked about the reasons people don't want to talk about this. Well, it's not a very nice thing to talk about to begin with, because nobody envisions themselves needing care, but if we age as A population, it is possible there's a 70 chance at some point in your life.

You'll need some sort of palliative care. Now I want to compliment everybody on this call. I know what you're thinking right now I know: what's going through your head, i'm the other 30 percent.

It's the other people not on this call, they're going to need to care because we're going to need you're going to be a caregiver And what we're sharing with you today is a way for both the caregiver. It's going to be your family member at some point. In time and yourself to get what you need and when you think about there's a 70 chance on one individual for those on the call, i'm sure there's a lot of people on this call.

That are a couple so 91 chances. At least one person and a couple will Need it a 49 chance. Both will need it at some point in time, and why is it so hard to think about it at a younger age is because well.

Investing in Life Insurance with Long-Term Care Benefits

The first case we see coming in is usually about age 81. and when you're 51 you're thinking, i'm still going to be running, marathons at 81. probably won't happen.

But by putting together a plan to live the life you envision for yourself in a place that you're at but from my financial standpoint, No matter what your plan is and as long as you put a plan together, that's what's important. I'd. Ask you to put three criteria up to the plan when it comes to being able to live that lifestyle you've envisioned for yourself.

The first is: does it preserve your capital? Now steven said you know it could uh be an event that wreaks havoc on your financial well-being. So does it preserve that Capital? In other words, not just in that situation, but does it give you the ability to no matter what dollars you put up? If you live, if you walk away from it or if you die, you get the money back, but by putting those dollars up and being able to make an investment in the lifestyle you envision for yourself, is it the most effective and there's a lot of plans That are effective, don't get me wrong and I compliment you if you've already put one together but from a tax standpoint and a resource standpoint isn't the most efficient plan and last but not least for anybody here, that's been through one of these situations. I'm sure you know it's not just the money.

Does it give you more access and control over dollars, your own, what's available to you, And resources that are available to address that situation, so does it preserve your capital in that lifestyle? Is it the most effective and efficient plan, and does it give you more access and control over your dollars now your dollars in the future, and the resources you need to address the situation, I can tell you that, for the people With policy 75 of them Are staying at home they're getting the care that they need and it's not a drain on their resources and they find that putting the dollars up was the most efficient plan from a tax standpoint. Also, there's asking you know, I guess: what's involved in starting a long-term care policy aside from the money you know, do they need to get health, physical or what's The qualifications look like, so what America does very good question? Probably the most common question, you're gonna get at this point, you're going Kevin sounds great. I do want a lifestyle and vision for myself, but let's cut to the chase.

Investing in Life Insurance with Long-Term Care Benefits

How do you do this? How does somebody put the most effective and efficient plan together or give them more access to control? What America specializes in is Taken very similar to what you're doing now we take a life insurance policy, the whole life policy or an annuity and give you the ability to the ability and a joint policy. So you can put both people on one policy: the ability to leverage the value in that policy. Should you ever need care with the added benefit of adding a writer to the policy?

That means that no matter if you use all of the money up in the policy, it will continue to pay your claim. As long as you live, you could be as old as methuselah 969 years. We would continue to pay that claim for you, so you're leveraging a life, insurance policy or an annuity of course, just like now because it's in life, insurance policy, or annuity there are underwriting requirements, but one of the benefits one America brings to the table is The fact that we will look at people less than healthy also so you might be thinking wow.

Can I really get this policy i'm 68 years old or i'm 65 years old? I already have some health issues. No, you would not be excluded. It's no different than any other life insurance policy.

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There are underwriting requirements are available, but the one thing that America Brings to the table is we will look at just about anybody. Cancer survivors with mild to moderate depression mild to moderate, rheumatoid arthritis, we're the only company excuse me that looks at type 1 and type 2 diabetics. I use my own case as an example.

I have a policy with one America and I do a really good job of keeping myself in shape work out. All the time do a lot of hiking visit national parks everything's in line, But on the outside. It sounds real good on the inside.

I'm a type 1 diabetic. I had a brain tumor removed in 2015 and I had melanoma but recovered from them all I recovered from diabetes. I continued to take insulin, but the company was a lot, and gave me a chance to get a policy with them.

Investing in Life Insurance with Long-Term Care Benefits

So I can live that lifestyle I envision for myself so applying for the policy wouldn't be any different than you do now, But the thing that the policy does more than just offer you financial benefits, a lot of people say well. Couldn't I do that in my current structure, I have a plan right now and Chris and Steve, and the rest of the team have done a great job, showing me a way that I can access my policies for money? But this policy allows you to keep the other assets and preserve them.

Well, this one provides you those Resources. Now the thing that this does, that other plans don't do everything is paid. Tax-Free everything is paid directly.

You never have to worry about paying a bill. Your loved ones never have to pay to worry about paying a bill. We give them access to claims concierge, which, should you ever be in a situation where you need cl care.

They have a 1 800 number that they get called anytime, and get their Questions anchors. There's a good chance if you bought this when you were 60 at 81 years old you've had the policy for 20 years, your family just pulls it out. They go, you need to have coverage, but how are we going to get it instituted? We are there to answer the questions.

These are one American employee they're based in Indianapolis. It's not a 1 800 number somewhere else or a third party they're there to give the family support, But you might be in a situation saying Kevin, that's great, but I live in Boca Raton Florida and my kids live in Milwaukee. How is this going to help? My kids in Milwaukee provide care for me.

Should I not be able to speak for myself very valid question. There's one month of benefit available on the policy per year That allows them to hire their own claims concierge. So they could call somebody in Boca, Raton and say: look my mom or dad needs care.

This is the care that they need. This is the money we have to spend. This is I need somebody in their house full time.

Could you put the whole thing together for me: there are additional dollars in the policy that does that for you that buys medical Equipment that will give you uh respite support if one of the care caregivers if it's a child, they can't give it so there are additional resources That address everybody's lifestyle and the caregivers. Should they be your children, real pay children, but it does that. So it's just leveraging money in the same way you're doing it now, but the policy offers additional resources To make sure that the family, as well as the patient, maintains their independence and dignity over time kind of a long-winded answer.

For that. Yes, there is underwriting involved, but I want you to understand why this would be a little bit different than what you're doing right now, but the best and most effective plan. Should you address that situation so yeah? I know you talked about Health and that part of it so 72 and 71-year-olds, perfect health, no meds.

What do you what're your thoughts on what they'd? Be a good candidate, possibly a great candidate. We issue policies up the age of 85. , the most likely candidate to purchase these right now is between the ages of 57 and 63. We quote as low as 40.

We do a lot of quotes for people in her 60s. Obviously, as you move along in age, you start facing this with your own Parents and i'm sure I'd be willing to bet without even taking a poll. At least 50 percent of the people on this call are addressing this within their families right now, so they understand the need for resources.

They understand how to get. You know it's how hard it is to get the bills paid. Any questions answered, but the most likely person is a person that doesn't have a plan And if your feet are touching the earth right now, you should be putting a plan together for this and there's only one way out of it and that's to leave the earth Early and no one's signing up for that because you have the resources to live a longer lifestyle, so be you should be prepared for it, but a 71 72-year-old.

We can do it with qualified money. If you're, not using that money, you can send it over my life insurance, possibly A cash, and we also allow you to pay for it. Whatever you're comfortable with you do a lump sum, you can pay for it over time.

Like I said you can use qualified money, you can partner with a lump sum and pay for the rest over time, so steve and Chris and the rest of the gang they have the ability to design one that fits your lifestyle and your financial needs To be Able to get it paid for yeah, definitely um all right so just to clarify. If somebody has an existing one, America policy, there's no way to just add long-term care onto the existing policy right, they would need it would be a new policy correct and a very good question for those people, and - and thank you for believing in one America To begin with, now, the existing policy would be a true standalone life insurance policy. These policies, although we're Leveraging life insurance, really are meant for long-term care and have a long-term care rider on them, uh to be able to do that, but good question yeah, absolutely um.

Here's one Nathaniel asking: can international students get whole life insurance? You have to have a tax id number in order to be able to purchase the policy. Do you send an international student? You need somebody who has um uh temporary visa. Currently, you actually have to have u.

s address in u. s social security number or a tax id in order to purchase the policy no different than a standard life insurance policy. It really, it really doesn't differ from the purchase of a standard life insurance policy. If you've done, that, already same rules would apply right. So just another age question: there's not A there's, not a cut-off age. For these then Kevin is right. We will issue the life insurance policy update 80. We will issue the annuity up to age 85.

There's no cutoff for care, though so, for instance, if you bought a policy at age 60 and you needed a carrot, age, 101 policy's still good policy lasts forever. There's no cut-off on the policy uh at all when you start receiving care and because we are the only company that offers lifetime benefits And here's the real benefit to a one. America policy because we're the only company that does joint policies so we'll write down both a husband and wife with one policy.

So we have one policy: that'll cover two people and three ways to get your money back. If you live you're going to take the benefit from it, because you never needed care and hopefully you'll be one of the 30 percent, if you tend to, if you decide to walk away, you'd get the cash value no different than your life insurance policy now, but You're most likely to use it for long-term care and the amount of money can't run out. So in a joint policy, let's say the first person needs care and they need care for 15 years.

It's one of those Alzheimer's or dementia or Parkinson's Events. Worst case scenario, the spouse is worried about what happens to me. We've used up all the money in the policy.

Am I going to pay for my care? They never have to worry about. Where they're going to get care from the policy would give them the same level of coverage for, however long they needed it without having to access additional resources of your own for that period of time. So that's the benefit of the policy.

So it's going to pay. No matter how long you need it for and pays for two people and when the first one needs care surviving spouse never has to worry about what about me. We don't raise prices, we don't ask you for more money and there's several different ways that you can.

You can finance the deal. Also, people Alaskan is a similar different from iul's Um. Yes, it's different a design tour.

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It's for long-term care. Again, the pension protection act and the in one of the statutes within life insurance gives us the ability to leverage the proceeds in the death benefit to be withdrawn, tax-free for long-term care and again the benefit to the individual and to their family. Is that with claims concierge, we take the onus and for those of you taking care of people, think about how do I arrange care? How do I get these bills paid? How do I get my questions answered and i'll give you a scenario on how to get your questions answered for those of you who haven't been through a scenario what you might want to think of so we're going to pay those bills directly, which I always like To say, make sure our goal is to maintain the Independence and dignity of both the patient and the family members, as you're going through one of these situations free up more of your time, give the ability to make sure your loved ones are getting the care that They need but to be able to get on with your life also at the same time, and if you think about how hard it is to get care a lot of people, think of these as health Events, they think.

Well, you know I get sick. I go to the doctor. Doctor gives me a prescription or I always like to relate it to a knee problem. So let's say you fall down, you tear your knee up, you call the doctor and call an orthopedic and you say hey. I think I think I tore my knee up. They actually come on in.

They take a look at you. They have you do a few just get up and out of a chair bend your leg Forward, like I think you tore your inductions. I think you tore your acl we're gonna have to send you for a MRI, got one right here in the office.

No problem whatsoever. You come in we'll have the radiologist read it then we'll tell you what you need, so you go and get the x-ray or the MRI done. Go back to the doctor say you need surgery.

You show up Thursday morning at the hospital. We have everything arranged. We've already called your insurance company and you only have to pay two hundred dollars we'll bill them for the rest of it.

If I was using that example as a long-term carry event, your access to answers and resources isn't as easy for those who have been through this. You know this same situation. You tear your knee up. You go to the doctor. The doctor says I think you tore your knee up. Here's what I want you to do.

I want you to go, find a place to get an mri done. I can't tell you where any of these places are, and I can tell you how it's going to get done and then you're going to have to have a radiologist, read it you're, going to find a radiologist. Have them read and send it over to me if they send it back and you need Surgery? I will show up for the surgery you're gon na have to find a hospital you're gon na have to find a team of nurses.

You're gon na have to find a team of anesthesiologists and if any of them don't show up the day of surgery, it's up to you to make sure you have somebody else to fill in now. That's a little far-fetched, but those of you who have been through a long-term care event with a family member know that there's not resources available to you in an easy click to get questions answered and that's why planning ahead is so important and as much as You think about the financial resources available to you through these policies and what they can do for you. It's the resources they offer.

So when you compare it to other alternatives and indexes, you well Another whole-life policy. I could just put the money in the stock market and let it grow you could. But all that gives you is money, it doesn't give you access to resources and believe it or not.

Steve 37 of policies owned are owned by people with assets between 5 and 25 million. It's the highest owners of these policies, and why do they do it somebody's worth 25 million dollars i'd be hard-pressed To try to convince them. They don't have a million dollars to pay for a long-term care event financially they're well set.

Investing in Life Insurance with Long-Term Care Benefits

If you ask them i'll, give you two answers. They'll say that it's the most efficient and effective way to access care uh for their loved ones and it's the resources available to them that the policy offers. So i'm gonna pay the bills get questions answered, so they Are trying to do all that.

So, yes, there are other ways and other places that you can place your dollars, but when it comes to planning for long-term care, you have to ask yourself again: does it preserve the lifestyle, i've envisioned myself and my finances? Is it the most efficient plan, not only effective and doesn't give you more access and control over those resources that you're going to need at that point In time, which makes you a hero and a better steward of your financial future and puts together the fellowship That you'd want to surround you. Should you ever be in that situation? I love it um all right. So that's a great explanation.

Uh Kevin of you know. Just it's not a financial thing. It's it's a matter of just time and service And not having to worry about things but um.

So I can. I got a lot of questions kind of coming in that are kind of similar. So, as you know, we do a lot of banking policies.

The infinite banking concept so high cash value, you know immediately take the loans use the money. So can you just kind of maybe you know and when we talk about those you know the client basically determines how much they want to pay into the policy Premiums each year like they decide that things like that. So can you just kind of layout? Maybe some differences then, and what you know a banking policy like we typically do and what everybody's used to seeing versus this long-term care policy.

Maybe the differences that maybe you know what the um the premiums might look like or you know any other similarities or differences. Can you kind of lay that out, maybe so the very good question now the Premiums? I couldn't tell you off the top my head, what the premiums will be, because it's going to differ just like your other policies, based on your age and your health and whether you're buying a joint policy or a single policy. Whether you want a limited amount of coverage, you want lifetime coverage.

I will say this: if a 61 and the 60-year-old healthy couple gave us a hundred and fifty thousand Dollars and the policy went through they'd receive approximately fifty-five hundred to fifty-seven hundred dollars. A month in benefit would equate to, I think, a 97 or 100 000 death benefit somewhere around there. So in other words, we guarantee both people over sixty thousand dollars a year tax-free for the rest of their life, for as long as they needed care.

Um They bet those benefits available to them out of the policy and if they should never use it, they get whatever death benefits. Last, it's guaranteed never to run out. It's guaranteed, never to go up in price.

The older you get the more expensive it gets. Why? Because we're crunching the time on when you're actually going to need the policy. If you come to us at age 78, we only got about three years to work With before we determine.

Investing in Life Insurance with Long-Term Care Benefits

If you can need the policy, you come us to a 58. Of course, it's going to be a lot cheaper. What do we see most people doing, and this is the one thing you have to think about from a and as as I understand it and if i'm wrong, please correct me steve if you're borrowing money out of the policy it works because you're paying yourself back The thing you have to remember in a Long-term carry event that money's not going back in the policy you're, not paying yourself back.

You may wipe that policy out at some point in time and then what are the tax implications? What are those when you could have just leveraged that policy and that money to put another plan in place that would make sure that you're not depleting those assets, so that's a better way to think of it from an infinite banking Standpoint? If i'm wrong, please correct me on that, because the money's not going back you're taking out 150 000 a year or 90 000 or 80 000 and the money's not going back, you have to keep paying for care and the longer it goes on the more expensive It gets so you basically you've leveraged that in another area, so you might say well, what's the best way to leverage it, I personally feel the best leverage is on a 20 year, a 20 pay policy for us and i'll tell you why you could give me 150, 000 and you set the money aside and we give you a death benefit. If you don't ever use it, but your care will be paid for and we're providing you with assets and resources to pay for it.

You can pay me over 20 years and keep your 150 000 Use. The 150 000 as a slush fund isn't producing enough interest to pay the um the premium each year on that policy at the end of 20 years. It's a good chance.

Investing in Life Insurance with Long-Term Care Benefits

You still have your 150 000 and you have a fully paid-for policy. That's going to offer you not only the financial resources but the resources available to address everything else. You need, And you still have all your money, so I can't make it do both, but you can leverage your assets better now to plan for the future without giving those assets up and in a lot of you know, a lot of this kind of boils down To your situation, you know so you know you're, like you're saying Kevin was saying age: health uh, you know financially what it looks like you know What kind of care you want to be lifetime or a certain amount of time or and all this stuff.

So every person is different. Every situation is different, every family different. So a lot of these more personal questions and specifics um, you know Kevin and his team are going to be able to answer on a phone call with you right Kevin.

Is that what we're doing correct, so I was just going to bring that up. So if you have any questions, we have partnered with steve and Chris and the rest of the team. It's a gentleman by the name of jack Landenberg.

Who would be your key contact and any questions to be answered? Jaxa has a long-standing uh in the industry he's an expert on long-term care. He can address your questions i'm available for Chris and Steve and his team. You know to answer case design questions also.

Investing in Life Insurance with Long-Term Care Benefits

If they should have any, it will depend on your situation. One of The things we provide, of course, you're going to think number one. How much coverage should I buy it's going to differ by where you live.

Obviously, Milwaukee Wisconsin is going to be a much different cost than Los Angeles, California, um and how much care is available, but we have a calculator where you can calculate out over 20 or 30 years, based on where you live. What that might cost to give you an idea of how much Coverage should I actually go out and look for the other thing to keep in mind. Since everybody has different financial resources, everybody wants to take a different amount of risk on what they leave on a table or what they might want to pay out of their own pocket.

Having some coverage is far better than having no coverage at all, Whether you have 2 000 a month in benefit or 20 000 a month, you still get a hundred percent of claims. Concierge somebody to lean on should have questions, so it's going to be based on your own personal situation and jack's an expert and being able to work with people on what's going to fit your situation, it's going to differ by you know whether you have one Person, that's uninsurable one person, it Is what the health looks. Like I mean we did it myself.

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My wife's policy, my wife, lived to be 150 years old and I got a bunch of health issues, so you know you have to really dig into it before you can uh recommend a specific plan, but jack is the expert available to everybody on what they should Be looking for, but the best thing to start with and i'll give you some pointers on where you should start. First thing, you start is thinking about the lifestyle you want for yourself. Number two is have a discussion with your family, especially your children.

Everybody thinks your children are going to take care of them. I've been doing this for a long time and i'm sure your kids love you and they would do anything for you, but they didn't ask to be born and they certainly don't want to take care of. You in that position they want to take care of Getting the care that you need, so they can maintain their independence and dignity, and then, once you have a conversation with them and you've articulated to them, you know: should this ever happen.

This is what I envisioned for myself and we're going to go out and plan together. That's when you get together with Jackson, discussing with my family, we've really thought about this. This is what we're looking for.

Could you help us design a plan? That's going to meet the lifestyle we envision for ourselves at some point in the future. Should this ever happen? Here's a good question: if you do a joint account and one person passes, will survivors get double the benefit if they keep living? No excellent question the most common question we get is when we quote you a benefit. So, for instance, if we say the policy will um Give you 6 500 a month.

It's not a shared benefit, it's per person, so you know that each person has that much per month when the first person passes. The second person has their amount available. It's still just 6 500.

Investing in Life Insurance with Long-Term Care Benefits

What's available in the policy. I can tell you in most situations or the way these policies are designed by the time you get to the second person. You probably have exhausted the death Benefit and the for the first person has and you're into the writer and we're paying for the claim at that point in time.

You're not looking at cash value and death benefit uh within the policy. But that's that's a very good question, the most common question and these are second-to-die policies also, so there wouldn't be any death benefit paid out, obviously because it wouldn't benefit The surviving spouse until the second person passes away. If there's anything left in the policy uh, if you're single when you take out the plan, can you add a spouse to the event you get married after the plan starts? You can start a new policy, but you wouldn't be able to add to that policy.

Very again, very good question, a common question we get and for younger individuals. This question comes up a lot and i'm glad they asked this. Whoever asked that question, because it sparked an idea.

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In my mind, a lot of younger people go look and I agree with them at that point. In your life you're in your early 40s, your late 40s, your early 50s you're going look. I need to focus on getting kids through college and paying off a mortgage.

Uh saving for retirement. We have a lot of people that are stacking policies, so you could buy you, can buy a policy when you're young, where You're going look. I know i'm healthy.

Investing in Life Insurance with Long-Term Care Benefits

I know I can afford some coverage. It might not be the maximum amount of coverage i'm going to need in 40 years, but at least I got something in place and then every five or ten years they come back to us and they buy another policy. There is no coordination of benefits with long-term care, so if you own five policies - and you went on the claim - you actually could use all five of those Policies to make sure the claim gets paid for and we do see very effectively younger individuals, those between the ages Of 40 and 55 - really that are interested in this as part of the financial plan, starting to stack the policies over time so that they can get the coverage and you have changes in marriage deaths and divorces and family changes.

So you know it is flexible enough to let you change with that uh to go out and get another policy all right, um. Here's a good question, actually Kevin. I'm going to ask you this because I get asked this all the time on the phone about uh about whole life policy.

So what do you? Let's see how you answer? So what are some of the downsides? If any well, i'm kind of biased? So it's hard for Me to say there is no downside to it because effectively what you're doing is putting a plan in place. That's going to address a future situation without putting your dollars at risk. The only downside to it that I could tell you is that you die and never use it, which really is a downside because you're still going to get a death benefit out of the policy or your beneficiaries.

Investing in Life Insurance with Long-Term Care Benefits

Are You aren't they gonna get you're gonna get the money back one way or another? The downside is not having a plan, and I can tell you invariably there's a hundred percent of people that have said don't need it. I can do it otherwise i'll use my own money when they're in that situation always come back and say I should have taken care of this 20 years ago. Every single person and i'll give you a book to read i'm big on reading books on you know.

Don't just take my word for it, of course, you're going to expect me to come on this call and tell you how great it is. There's a book called being mortal. So it's b-i-n-g-m-o-r-t-a-l, just in case my buffalo accent, can't say that correctly, that's not coming across right.

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The gentleman rose a Today is a tool, Gawande he's a physician and a surgeon, and he consults with the medical community on how to deal with patients to make it more of an interactive discussion. Not just you know, dealing with to tell them what to do and get them out of the office. What the book is about is one is accepting your own mortality and as we age and as time gets on.

If things do change for us, it's just part of nature, Nothing to be afraid of, but being prepared for it's the best way and the book's all about either people in long-term care or terminal illness situations and what their view of it is. There's two things: every single person says and it doesn't matter what their background is doesn't matter if they were from a certain ethnic background socioeconomic how much money they had. They asked you: how did you get in this situation? Every single one of them said the same thing.

This isn't a life I envisioned for myself. If I had had a plan, I wouldn't be here right now doesn't mean they wouldn't be unhealthy. They wouldn't be in a hospital having other people make all their decisions for them.

They'd always follow it up with what could we do to make you happy And they all use the same two words: I just want my independence and dignity back so whether you use the policy or not you're going to have a lifestyle you envision for yourself and You're going to maintain the independence of dignity, knowing you have a plan in place, and should you ever need it that you can implement the plan and maintain that independence and dignity? So I guess the only downside is that Somebody could say heck. I could have invested the money in the stock market and done a lot better from a cash standpoint. Yes, I won't argue with you from a cash standpoint: i'm using infinite banking.

Could you have done it? Yes can't argue with you: i'm not going to try to say that that wouldn't work from a risk standpoint, there's a there. Only a 30 percent chance, That'll pay off for you, there's a 70 chance. You're gon na need my policy and my coverage.

So it's where it's a chance you want to take - or I always like to think of it as driving. So I drive at about 10 miles over the speed limit, maybe 15 at times that I go, but that's the risk i'm willing to take i'm willing to accept. If I get a speeding ticket, it's not going to be points on my license probably have To pay a couple hundred bucks.

It's going to be an inconvenience. My insurance will go up a little bit, but that's the financial risk i'm willing to take some people want to drive 20 miles an hour now. You're talking points on your license.

Your insurance is going to go out and much more much more likely that you're going to have an adverse uh effect. There's some people, i'm on highways all over the country, that'll Drive 30 miles an hour over the speed limit, you're driving over a hundred miles an hour. Well now you might go to jail.

You're gon na have your license canceled, but that's the risk they're willing to take. So how fast do you want to drive into one of these? The faster you drive, the more risk you want to take the more adverse the effects are going to be both financially physically And emotionally to both you and your family. But you have the choice to make and every expert that you read uses three words.

Doesn't matter what background or from or and i've read books on all different topics on aging, every single one ends the book. The same way with three words: have a plan just have a plan, and that's you know that's what we're sharing with you today, just a more effective and efficient way to do it to Give you access and control over those things that you may need. What effect does using a long-term care rider have on the uninterrupted compounding interest in dividend cash value accumulation in the whole life policy? Very good question one I expected from this group.

So these policies don't pay dividends. They do pay interest into the policy And again the writer on the policy continues to care the policy itself. If you have a longer-term event, you're, probably going to exhaust the policy in about three and a half years right around three years. If we're paying out the maximum amount, so there will be no death benefit. There will be no cash value left in the policy, but you don't have to access additional resources to Have the care continue to be paid for, and access to all those additional resources that are in the policy. So there's no effect on dividends.

They don't pay dividends in the policy you'll pay interest in, but from a financial standpoint. You probably are going to exhaust any of the death benefit or dividends in the policy unless you were lucky enough to get through Life without using the policy which, if you live to be an older age, we just don't see it much all right. Cool, let's see, is there a way to use hsa money to pay for a program like this aha great question and one of the things that we really specialize in there's a couple of different ways to make it more tax efficient one is you cut the rider Cost so the cost of the policy, since this life insurance and annuity Aren't available or deemed available from a tax standpoint to be able to write off the rider, because this is a whole life policy would identify more of that cost does give you the ability to Pre-Finance it through an hsa up to irs limits for your age now from 50 to 60. I think it's right around 1500 1600 per person right now. It gets more beneficial in your sixties. In your seventies, the short answer is Yes, you could pay for it through an hsa account.

You could use the writer cost to write off additional medical expenses on your taxes and, if you're, a small business owner, if you're a c-corp or a non-profit, you can buy it through your business. Get a joint policy and it's a top-line write-off, on the cost of the rider against any profit that you have, and we do a lot of Section 162 bonus plans uh they put this place for that business, especially small business owners that are out there great question. Thank you for asking him yeah.

That's good, all right so mark, say, and for all the people contemplating this plan try and shop around for a stand-alone long-term care policy and see how much it will cost. I can say good luck and even find a company that will even sell you a plan at all. If you do find, a company will probably be unaffordable.

He already tried - and that was that's uh mark sue said earlier - that he has policies for him and his wife and loves them, and - and thank you and again, you know jack can talk about stand-alone policies. You can talk about asset-based, then you have to ask no matter what the plan is again. Does it preserve my capital and a lifestyle vision for myself? Does it give me more access and control and when you compare traditional to asset-based, it gives you access to finances, doesn't give you more control over your finances? Well, the thing you risk with a traditional long-term care policy is, and is they the question? The person who put the question in us pointed out: that nobody really offers them that much anymore.

You Can't find them in the marketplace, because everybody's going the asset-based route, is what they're doing it. Give you control if you're liable to premium increases in the future. On those policies, you aren't in an asset based policy, and is it the most efficient plan it could be, but you know you know what is it covering and the thing to think about These plans too again, 75 of people receive care at home.

They don't pay for care, no matter where you get it home. Health care, adult day, care, assisted living, nursing home. The majority of what we paid all for is uh home health care and the growing the biggest growing field is adult daycare, because a lot of people are people in their 50s are taking care of their parents still have to work, so parents are going to get Care Somewhere during the day and then just kids are taking care of it at night, but these these are great questions.

People are thinking, i'm thinking about this, the right way, yeah, definitely all right what else we got we're caught up on questions right at the moment. Um, i'm trying to think you know when when you, when you met with our team and did the whole presentation, I know that we had some really good questions at That time and you covered a lot of really good stuff. I'm just trying to think back on that, but I think we've hit most everything right now, but we caught up on questions so where, from here kevin, where do you think what's important that we need to know about again? Well, let me give you a couple of pointers I would do.

The first thing is think think in your mind, What lifestyle do I envision for myself? I know as part of my it's in my medical directive. I actually had my lawyer put it in my medical directive, how I am to receive care if I ever need it, because the toughest part is leaving it in your family's hands and going you know. Yeah dad needs care, but how do we do it? Mom needs care about.

How do we do it? You know you leave it up to them or as one of the people I work with says all the time. My job is to make sure your kids are still talking to each other when you're, not here anymore. So don't put them in that position, but once you think of that lifestyle you know work with steve and Chris and the rest of the team on you know, what's available to me that most effectively efficiently.

I can deliver on this that I have more access to control over resources that I could put more independence and dignity back In the hands of my children and let them get on with my life, and I can maintain my independence and dignity and the people that do That and I you know, if you close up, let me share what happens when somebody passes away and their family writes us a letter. I've been doing this for decades started back in a business in the mid-80s, and i've worked for several companies That offer plans like this, and you always get letters in after people have passed away. Talking about the coverage.

Every single letter has three paragraphs: they're, almost identical and there are thousands and thousands of thousands of these letters. The first paragraph always says thought this was the craziest thing we ever didn't want to pay. The premiums thought it was nuts buying this policy, we're Never going to need it.

The second paragraph talks about, we would have been destitute without it. We actually cashed the policy in it gave us the lifestyle we envisioned for ourselves gave us the resources that we need and it kept our family together and it always closes with. I want to thank the company for providing all those resources to giving us people to talk to and giving us the emotional support, So the people that have been through this if you've talked to anybody, there are some people on the call, so they have policies or Going through this with their family, they will tell you the best plan is to have a plan and my having a plan is kind of accepting we're all going to age.

At some point, the body just doesn't keep up. There is there's a cure for this. You have to do Two things I can almost guarantee. You won't go through this. If two things you can care one is you leave early and we're talking about nobody's signing up for that, we're all living to be 80. 90, 100 years old.

Now the other thing isn't if you come up with this call me pure gravity because that's going to wreak havoc on your joints over time and the scientists know that there's nothing we can do About it. I just arthritis is part of aging another thing to think about your own situation. 65 of the people over age, 60 are taking three or more prescription drugs a day, so be a student think about what your finances and your lifestyle look like in the future, and then just put the plans in place and have open conversations with your family And With your financial advisor on hey, how do I best position myself and there's no better team than Chris and steve and the rest of the group to advise you on that? They've done a great job.

Up to this standpoint, they put a great team, together behind them and one America and myself and jack to be able to help you. So there are people there that want to assist you in moving this forward. But It's up to you to take that first step and be a good steward of your financial future and put together the fellowship that you envisioned for yourself at some point in time.

Yeah and do we have jack some contact information or what's the best way, to get a schedule with jack, we will send that out after the call with a follow-up with his contact information. So with that being said, uh bigger pockets Were asking how does it work if your folks are retired that make any difference like a son or a daughter wanting to purchase a policy on their parents, the parents are retired. Would that make any difference? That is a great question.

Thank you for asking yes, doesn't matter who pays for the policy or wants to get on your parents. The other thing we're thinking of seeing a lot of now Is because of the securities act. So now, if you have a qualified plan, if you're a retired parent, you have a qualified plan and you know look, I don't need the money anymore. I don't need the money, i'm just going to leave it to my kids. Well, the kids have to pay taxes over a 10-year period on the money they receive, regardless of how old the kids are. What we see a lot of parents now doing is going to that qualified money and going hey.

What? If I turn that into a care scenario, I buy some long-term care insurance and one America has a program where we would take the ira and over a 10-year period, use a distribution from an annuity to pay for the long-term care. A parent gets a 1099 every year, but at the end of 10 years the children are left with a life insurance policy which guarantees one their parents would get coverage If they need it and number two. If they don't ever need it, the money gets paid to them by via tax-free life insurance as opposed to cash in an ira being paid to them and they having to pay the taxes.

So there's several scenarios where children can do it and we see a lot of children doing that now they have retired parents, parents might be getting you know up in age and they're going you're any care at Some point, but you're still relatively healthy. What's a way for us to work with you and put a plan together to be able to pay for it, so good question thanks for asking. There are a lot of people.

Thinking of that at this point, in fact, my own mom, who passed away about a year ago, 20 years ago, I told her - get a policy ends up in a nursing home, costing us an arm and a leg, And then thinking back. I was like the reason she didn't buy, a policy. She didn't think she could afford it and thought back on them like.

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I should have just paid the premiums for on it and it would have been a lot easier for everybody all right, perfect yeah. So what we're going to do is anybody that wants to talk about long-term care. You want to schedule a call with Kevin Jack and our team uh.

What you'll do is just send an Email to Shauna, and Chris Noggle. com and Shauna will arrange all of those phone calls and get you guys on the long-term care, uh specialist schedule so we'll get that um get that going so Shawna at ChrisNoggle.com, and I just put that in The chat box also so so uh. Can I finish with my song analogy: do I use the demeanor, please yeah so This is for everybody in the group everybody is familiar with the song, let it be by the Beatles. I'm sure you are. We all grew up with.

It heard it's still being played on a radio written by paul McCartney and a song by Paul McCartney. Here's where that song comes from so when the Beatles first met way back in the 50s, in England, Paul McCartney and uh john Lennon had something in common, and both their mothers passed away from breast cancer when they were 15 years old. » Read More: Life insurance & Types